58.com-backed listings platform 5i5j.com has made a 17.8 million RMB ($2.63 million U.S.) strategic investment in 58.com-backed VR real estate listings technology provider 123kanfang.com. 5i5j.com will reportedly obtain a 10 percent stake in the company in return for this investment.
58.com made an undisclosed strategic investment in 123kanfang in February.
Founded in 2015, 123kanfang.com claims to be the world’s first technology provider to achieve low-cost 3D-modelling through machine learning. The technology is able to create seamless VR reproductions using low-cost cameras and without the need for professional photographers.
According to the company’s website, its technology can create a full VR reproduction from smartphone-quality images that are uploaded directly to its app. 123kanfang.com completed angel investment in July 2017.
5i5j.com also acquired Nanchang-based real estate brokerage Zhdclink.com in December 2018. Founded in 2001, Zhdclink.com operates in 20 cities in China, with more than 2600 individual agencies and 20,000 agents joining its brand.
The move came in the same week as 5i5j.com chairman of the board Zheng Xiaohai 郑小海 tended his resignation. Zheng’s exit was the second major resignation by an executive of the company in just four months.
In June, 58.com invested one billion RMB in cash into 5i5j.com, in return for an 8.2 percent minority stake in the company. The business’ H1 report indicated that it expects to outlay 190 million RMB in portal fees to 58.com in the second half of 2018.
58.com’s investment came as the company was in the midst of an aggressive expansion strategy. Total revenue for 5i5j.com in H1 was a staggering 5.3 trillion RMB ($770 million U.S.) — up 742 percent year-over-year. Costs were up 730 percent, to 3.6 trillion RMB. Profit attributable to shareholders was 328 million RMB — up 1,190 percent year-over-year.
The company completed 270,000 rental transactions in H1, bringing in 740 million RMB in revenue. Property sales (primary and secondary) totaled 46,000, resulting in 2 trillion RMB in revenue.
5i5j.com is listed on the Shenzhen Stock Exchange (SZSE: 000560).